Ammonia rules put FACT on the verge of closure

Kochi: The strict imposition of safety rules for the transportation of ammonia in barge is likely to put the cash-strapped Fertilisers and Chemicals Travancore (FACT) on the verge of closure, according to company insiders. The district administration has made it clear that the ban on ferrying ammonia in barges, imposed after a leak on May 20, would not be revoked until a compliance certificate of the 25-point safety recommendations is submitted.

FACT transports up to 500 MT ammonia from its Udyogamandal complex to Cochin division a day. Of this, nearly 192MT ammonia is transported through barges. The company is facing a daily production loss to the tune of Rs 2 crore ever since the ban came into effect, they said.

Ammonia movement will have to be stopped for a long period since FACT is not in a position to upgrade the existing barge owing to financial constraints. According to FACT sources, the total expense for complying with the 25 recommendations will be more than the price of a new barge.

An inspection team comprising experts from the Fire and Rescue Services department, the police and the Factories and Boilers department, appointed by the district administration to conduct a detailed inquiry on the leakage and submit recommendations, had identified serious lapses in the movement of the toxic chemical and recommended 23 immediate measures and two suggestions for planned implementation for safe ferrying.

The report recommended that hazmat vehicle (hazardous material apparatus), along with contingency crew maintained at Cochin division and at Udyogmandal complex, be replaced with hazmat speed boats to respond to emergency situations.